Vietnam Transforms into Southeast Asia's Digital Trade Powerhouse

YaYa News

Overview

Vietnam is executing a sophisticated policy transformation that promises to redefine its position in the global digital trade ecosystem. With a national e-commerce master plan targeting 2026-2030 and a comprehensive revised E-commerce Law, the country is strategically positioning itself as a pivotal cross-border e-commerce export hub in Southeast Asia.

The policy landscape reveals a meticulously crafted approach to digital market integration. By mandating seller verification through the national electronic ID system (VNeID) and requiring foreign operators to establish local representation, Vietnam is simultaneously attracting international investment while ensuring robust market integrity. The regulatory framework signals a nuanced understanding of digital trade dynamics—creating transparent, compliant pathways for cross-border transactions while protecting domestic market interests.

Economic projections underscore the strategic significance of these policy developments. With cross-border online import-export turnover reaching US$4.1 billion in 2024 and projected 18% growth in online exports, Vietnam is rapidly transforming its digital trade infrastructure. The e-commerce market is expected to hit US$31 billion by 2025, representing 10% of total retail sales and positioning the country as the third-largest e-commerce market in ASEAN. Amazon's identification of Vietnam as a major Fulfillment by Amazon (FBA) export origin further validates the country's emerging strategic importance.

Infrastructural investments complement the policy framework, creating a comprehensive ecosystem for digital trade expansion. Improved logistics connections in key cities like Hai Phong and Ho Chi Minh City provide the physical backbone to support digital policy ambitions. This holistic approach—combining regulatory refinement, digital infrastructure development, and strategic market positioning—demonstrates Vietnam's sophisticated approach to becoming a digital trade leader.

The policy signals a critical shift: Vietnam is not just attracting cross-border e-commerce but actively engineering an environment where digital trade can thrive, with carefully calibrated regulatory mechanisms that balance openness with strategic control.

Questions 4

Why is Amazon interested in Vietnam as an export origin?

Amazon recognizes Vietnam's emerging digital infrastructure, strategic geographic location, and supportive policy environment. The country's improved logistics, growing digital economy, and clear regulatory framework make it an attractive hub for Fulfillment by Amazon (FBA) sellers and shipments.

What makes Vietnam's new e-commerce policy unique?

Vietnam's policy stands out by creating a comprehensive ecosystem that balances market openness with strategic regulatory control. The mandatory seller verification through VNeID and requirements for local representation demonstrate a sophisticated approach to attracting international investment while maintaining market integrity.

What are the economic projections for Vietnam's e-commerce market?

The market is projected to reach US$31 billion by 2025, representing 10% of total retail sales. Cross-border online import-export is expected to grow 18%, reaching nearly US$2 billion, positioning Vietnam as the third-largest e-commerce market in ASEAN.

How will these policy changes impact cross-border sellers?

Sellers can expect a more structured entry into the Vietnamese market. The new regulations require either appointing local representatives or establishing local offices, which increases compliance complexity but also provides clearer pathways for legitimate cross-border transactions.